<p>S&P Global Ratings on Wednesday lowered India's economic growth forecast to 5.2 per cent for 2020, saying the global economy is entering a recession amid the coronavirus pandemic.</p>.<p>The agency had earlier projected a growth rate of 5.7 per cent during the 2020 calendar.</p>.<p>Asia-Pacific economic growth in 2020 will more than halve to less than 3 per cent as the "global economy enters a recession", S&P said in a statement.</p>.<p>"An enormous first-quarter shock in China, shutdowns across the US and Europe, and local virus transmission guarantees a deep recession across Asia-Pacific," said Shaun Roache, chief Asia-Pacific economist at S&P Global Ratings.</p>.<p>By recession, S&P meant at least two quarters of well below-trend growth sufficient to trigger rising unemployment.</p>.<p>"Our estimate of permanent income losses is likely to at least double to more than USD400 billion," said Roache.</p>.<p>As per the statement, external shocks from the fallout of the global viral spread add a new dimension. People flows from the US and Europe will be decimated for at least two quarters, heaping more pressure on the tourism industry.</p>.<p>If lingering uncertainty results in a strong preference for US dollars, policymakers in Asia's emerging markets may be forced into a damaging round of pro-cyclical policy tightening, Roache said.</p>.<p>The countries most vulnerable to capital outflows remain India, Indonesia, and the Philippines, he added.</p>.<p>"We lower our forecasts for China, India, and Japan for 2020 to 2.9 per cent, 5.2 per cent and -1.2 pre cent (from 4.8 per cent, 5.7 per cent, and -0.4 per cent previously)," S&P said in the statement.</p>.<p>The global policy response, including the Federal Reserve's policy-rate cut to zero and the Bank of Japan's scaled-up asset purchases, will help cushion but not quickly reverse these shocks, it said.</p>.<p>Local measures aiming to support vulnerable sectors and workers may help but their effect will "wane the longer the crisis lasts".</p>.<p>It further said the timing of a recovery depends, most of all, on progress in containing the viral spread.</p>.<p>Even if major progress is made during the second quarter, after a sustained period of stressed cash flow many firms will be in no position to resume investing quickly, the S&P said.</p>.<p>Households that have either lost their jobs or have worked fewer hours will spend less and banks will be busy managing the deterioration in asset quality, it said.</p>.<p>On Tuesday, Moody's Investors Service had lowered India's economic growth forecast for 2020 to 5.3 per cent (from 5.4 per cent), on coronavirus impact on the economy. </p>
<p>S&P Global Ratings on Wednesday lowered India's economic growth forecast to 5.2 per cent for 2020, saying the global economy is entering a recession amid the coronavirus pandemic.</p>.<p>The agency had earlier projected a growth rate of 5.7 per cent during the 2020 calendar.</p>.<p>Asia-Pacific economic growth in 2020 will more than halve to less than 3 per cent as the "global economy enters a recession", S&P said in a statement.</p>.<p>"An enormous first-quarter shock in China, shutdowns across the US and Europe, and local virus transmission guarantees a deep recession across Asia-Pacific," said Shaun Roache, chief Asia-Pacific economist at S&P Global Ratings.</p>.<p>By recession, S&P meant at least two quarters of well below-trend growth sufficient to trigger rising unemployment.</p>.<p>"Our estimate of permanent income losses is likely to at least double to more than USD400 billion," said Roache.</p>.<p>As per the statement, external shocks from the fallout of the global viral spread add a new dimension. People flows from the US and Europe will be decimated for at least two quarters, heaping more pressure on the tourism industry.</p>.<p>If lingering uncertainty results in a strong preference for US dollars, policymakers in Asia's emerging markets may be forced into a damaging round of pro-cyclical policy tightening, Roache said.</p>.<p>The countries most vulnerable to capital outflows remain India, Indonesia, and the Philippines, he added.</p>.<p>"We lower our forecasts for China, India, and Japan for 2020 to 2.9 per cent, 5.2 per cent and -1.2 pre cent (from 4.8 per cent, 5.7 per cent, and -0.4 per cent previously)," S&P said in the statement.</p>.<p>The global policy response, including the Federal Reserve's policy-rate cut to zero and the Bank of Japan's scaled-up asset purchases, will help cushion but not quickly reverse these shocks, it said.</p>.<p>Local measures aiming to support vulnerable sectors and workers may help but their effect will "wane the longer the crisis lasts".</p>.<p>It further said the timing of a recovery depends, most of all, on progress in containing the viral spread.</p>.<p>Even if major progress is made during the second quarter, after a sustained period of stressed cash flow many firms will be in no position to resume investing quickly, the S&P said.</p>.<p>Households that have either lost their jobs or have worked fewer hours will spend less and banks will be busy managing the deterioration in asset quality, it said.</p>.<p>On Tuesday, Moody's Investors Service had lowered India's economic growth forecast for 2020 to 5.3 per cent (from 5.4 per cent), on coronavirus impact on the economy. </p>